Debt Recovery in Europe: Which Cross-Border Tools Actually Work

The European Union has spent decades building legal tools for cross-border debt recovery. The European Payment Order. The European Enforcement Order. The Brussels I Regulation. The European Account Preservation Order. On paper, these instruments make it possible to recover debts across EU member states without hiring lawyers in every country. In practice, some work well and others barely function. The gap between legal theory and operational reality matters enormously for overseas creditors.

Tools That Work

European Payment Order (EPO). This is the most practical EU-wide collection tool. It applies to undisputed cross-border claims, can be filed in the creditor's home country, and produces an enforceable order across all EU member states. For straightforward B2B debts — where you have a contract, invoices, and proof of delivery — the EPO provides a faster route than navigating a foreign court system from scratch. The limitation: if the debtor contests within 30 days, the EPO converts to ordinary proceedings in the debtor's country, which eliminates the efficiency advantage entirely.

National fast-track procedures. Every EU country offers some form of expedited payment procedure for undisputed commercial debts. Spain's monitorio is one of the best — roughly 20 days for uncontested claims, modest costs, and a straightforward filing process. Germany's Mahnverfahren is famously automated. France's injonction de payer has efficient enforcement. The national route is usually faster than the EU route for single-country debts.

Tools That Underperform

European Enforcement Order (EEO). In theory, this eliminates the need for exequatur (the recognition step) when enforcing a judgment in another EU country. In practice, the requirements for obtaining an EEO certificate are so strict that many creditors find it easier to go through the standard recognition process. It solves a problem that was already minor.

European Account Preservation Order (EAPO). This allows creditors to freeze a debtor's bank accounts across EU borders. Powerful on paper, but you need to know which bank the debtor uses — the order doesn't help you find accounts, only freeze ones you've identified. Its effectiveness varies dramatically by member state.

The Practical Approach: Go Local First

For the majority of commercial debts owed by companies in a single EU country, the fastest and most cost-effective route is a local collection agency combined with national legal procedures. EU instruments work best as supplements, not substitutes.

The typical sequence: engage a local agent in the debtor's country for amicable collection. If that fails, use the national fast-track procedure (monitorio in Spain, Mahnverfahren in Germany, injonction de payer in France). Reserve EU instruments for multi-country enforcement or situations where you're already litigating in your home country and need cross-border recognition.

For multi-country portfolios — debts across Spain, Germany, France, and Italy simultaneously — the coordinating agency model works best. One agency manages the portfolio and routes each case to its local network partner in the relevant country. This provides central reporting with local execution.

Where Spain Fits in the European Landscape

Spain's monitorio is among Europe's most efficient initial procedures for creditors with solid documentation. Where Spain compares less favourably is in enforcement of contested judgments, which can be slower than in Germany or France. This makes the amicable phase particularly important in Spain: resolving before litigation avoids the enforcement timeline that creditors in Northern Europe find frustrating.

For overseas creditors with Spanish debtors, the practical advice is straightforward: engage a Spain-based agency, exhaust amicable options first, and use the monitorio as the legal backstop. EU instruments are there if you need them, but you probably won't.

FAQ

Can I use the European Payment Order for debts owed by UK companies after Brexit?

No. EU instruments no longer apply to the UK. For debts owed by UK companies, you'd need to use UK domestic procedures. Conversely, UK creditors owed money by Spanish companies can still use Spain's national monitorio procedure — it's available to all creditors regardless of nationality.

My debtor has operations in three EU countries. Where should I file?

File where the debtor's registered office is located or where the contract specifies jurisdiction. For a Spanish-registered company with operations in France and Germany, the most effective approach is usually to engage a Spanish agency first and use the national monitorio. If enforcement requires action in the other countries, EU recognition instruments facilitate cross-border execution of the Spanish judgment.